Unlocking Global Markets：Alipay and Naver Pay collaboration
The Covid-19 has promoted the rapid development of digital payments, although offline face-to-face commercial activities have now fully resumed, these results have persisted and even accelerated.
As representatives of digital payments, Naver Pay and Alipay plus have confirmed their cooperation and will provide services this year. This means that Naver Pay will be integrated in Alipay’s payment system, and consumers who use Alipay can also use Naver Pay when shopping online or in physical stores.
The rise of mobile payment globally
The digital payment market size reached US$8.4 trillion in 2022, and the compound annual growth rate from 2023 to 2032 is expected to be 16.5%.
With the rise of e-commerce, the popularity of smartphones and mobile devices has provided digital payment systems such as Alipay and Naver Pay with a larger user base. These e-wallets are integrated into e-commerce platforms, allowing customers to make secure online payments at any time. Plus, they also provide consumers with a seamless and convenient payment experience in physical stores.
In 2022, the total share of the mobile payment market in the Asia-Pacific region will exceed 48%, which also shows that Chinese and Korean consumers who are familiar with using Alipay and Naver Pay are the main force in digital payments.
From the merchant’s side, accepting Alipay means approaching the huge consumption potential of China and South Korea.
How popular is Naver Pay?
Naver Pay is a digital wallet that lets people in South Korea pay for their purchases online. It started in 2015 and is run by Naver Corporation, one of the biggest internet companies. It's the second most popular e-wallet in the country after Line Pay.
A lot of South Koreans like using Naver Pay. In fact, 53% of them use it to buy things online. And by June 2021, about 28 million people had signed up to use it. Among them, over 10 million are active users.
In 2023, there was a big increase in how much people were using Naver Pay for in-person purchases. The average amount each person spent in stores went up by 123% from March to April. And in April, 72% of people who used Naver Pay made two or more in-person payments.
The Strategic Partnership between Alipay and Naver Pay
Market expansion
By combining their strengths and resources, these 2 mobile payment giants aim to reach a broader audience and offer their services to more users. This collaboration allows them to tap into each other's user base and explore new opportunities in the rapidly growing digital payment landscape.
Cross-border e-commerce
By working together, they can facilitate smoother and more efficient cross-border transactions for users. Alipay's established presence in various international markets complements Naver Pay's influence in South Korea, creating a seamless payment experience for users engaged in cross-border online shopping.
Tourism promotion
With Alipay's widespread acceptance globally and Naver Pay's strong leader position in South Korea, the partnership can create an integrated payment solution for tourists. This collaboration simplifies financial transactions for travelers, making it easier for them to navigate and make purchases during their visit.
What are the benefits of Alipay and Naver Pay’s collaboration?
Convenience of payment
Users gain access to a wider network of merchants and services, both domestically and internationally. For instance, South Korean users of Naver Pay can utilize Alipay's extensive network when traveling abroad, simplifying transactions in regions where Alipay is widely accepted.
Customer experience
With streamlined processes and interaction between the two mobile payment systems, customers can enjoy smoother transactions, reduced complexities, and a consistent payment experience. This seamless integration enhances user satisfaction, fostering loyalty and trust in both Alipay and Naver Pay.
Increased revenue
By leveraging each other's user base and expanding their reach, they can tap into new markets and customer segments. This increased accessibility leads to higher transaction volumes, potentially generating more revenue streams and allowing the companies to offer complementary financial services or products to a broader audience.
Can overseas merchants accept Naver Pay too?
The answer is YES. Merchants in Europe and in the USA can accept Naver Pay too.
How can overseas merchants accept Naver Pay?
With the cooperation between Naver Pay and Alipay, merchants do not need to integrate Naver Pay into the payment system separately. They only need to accept Alipay. In this way, customers using Naver Pay can also make purchases at your store. By accepting Alipay, you gain access to a huge potential market including Chinese and Korean consumers who are willing to travel or make online shopping in Europe and the United states.
Silkpay focuses on providing the most professional cross-border payment and mobile payment solutions for European and American merchants. Accepting the most popular payment methods through Silkpay and simplifying the payment process. Help you attract more customers. All you need to do is join Silkpay to enjoy more benefits.
Accept Naver Pay in store
✔ Available for rental or purchase
✔ Supports 16+ Asian e-wallets (Including Naver Pay, Kakao Pay, LINE Pay etc.) through Alipay+, but also payment methods such as: Visa, Mastercard, CB, UnionPay, Google Pay, Apple Pay and WeChat Pay
✔ Wireless: can accept payments anywhere
✔ No configuration: Ready to use terminal
✔ Long lasting battery
✔ Autonomous refund
The significance of accepting both Alipay and Naver Pay
It expands their customer reach to diverse markets, particularly targeting Chinese and South Korean consumers who heavily rely on these respective payment systems. By accommodating multiple popular payment options, European and American merchants can attract more international customers, enhance their competitive edge, and increase sales potential.
The impact on customer trust and satisfaction
Both payment methods are widely trusted and utilized by millions of users in their respective countries. For consumers traveling or making cross-border purchases, the familiarity of these payment options comes with confidence and convenience. By offering these trusted payment methods, overseas merchants create a familiar and secure environment, strengthening customer satisfaction and encouraging repeat business.
Streamlining Transactions for Global Consumers
Whether traveling or engaging in cross-border shopping, having access to these payment methods simplifies the payment process. Clients can make purchases without worrying about currency conversions or the hassle of finding alternative options. This seamless experience encourages consumers to shop with confidence internationally, ultimately benefiting both merchants and consumers in the global marketplace.
Conclusion
In embracing the collaboration between Alipay and Naver Pay, merchants worldwide stand poised at the threshold of an expansive and interconnected market. This partnership, coupled with Silkpay's support, not only streamlines transactions and fosters customer trust but also opens doors to an extensive consumer base, driving businesses towards sustained growth and success in the global marketplace.
Source
https://www.ppro.com/payment-methods/naver-pay/
https://www.koreaherald.com/view.php?ud=20230519000524
https://www.ajudaily.com/view/20210810101310065
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About the author: Silkpay
Based in Paris, Silkpay provides omnichannel and secure payment solutions to help physical stores and e-commerce in Europe accept more than 30 of the world's most popular payment methods: Visa, Mastercard, CB, UnionPay, Alipay+, WeChat Pay as well as Asia-Pacific’s major e-wallets.
Silkpay is a winner of the LVMH Innovation Award. The company was also selected as a finalist for the "Money 20/20" Best Startup and in the "MPE Berlin” Startup Awards. Silkpay also won the "Best Fintech" awards from Capgemini and BPCE.
Silkpay helps merchants deliver the smoothest payment experience to their customers. We are a talented and international team driven by a single goal: to improve the customer experience and make payments simple and secure.